Markets can be missing:
A) because a market is taxed.
B) when the sale of a particular service is banned.
C) when miscommunication of information between buyers and sellers leads to the wrong equilibrium price.
D) All of these are true.

Question

Quizplus · Accepted Answer

All of these factors can lead to a missing market. Taxation can lead to a decrease in demand or supply, causing a shortage or surplus. Bans on a particular service prevent any market from forming for that service. Miscommunication of information can cause buyers and sellers to not reach their equilibrium price, and therefore a market may not form.

Markets Can Be Missing